Questions & Answers about buying property and living in North Cyprus
Here we have summarized a few questions and answers that we are most frequently asked about investing in North Cyprus.
Selection and purchase of real estate in North Cyprus
First of all, a property is reserved for 2-4 weeks. You will receive the purchase agreement from the construction company and can give it to your attorney for review and discussion. After the lawyer has reviewed the purchase contract and gone over it with you, the contract is signed. At the same time the deposit of 30-50% is also due.
If you prefer to run the affairs through your lawyer, he will first receive the payment, check everything, register the property in your name and forward the deposit to the developer, for this you do not have to be on site. If you prefer to take this into your own hands, you can also go through and discuss the individual points of the contract with the developer, in which case you make the payment directly to the developer.
Further payments are due according to construction phases. The payment plan usually ends after completion and thus the handover of the keys.
Some contractors also work with longer payment schedules of 3-6 years, depending on the construction period. Here it is also possible to move in or rent even though full payment has not yet been made.
Often there is also the possibility to pay 100% in advance and thereby receive a direct discount (e.g. 5%) or similar.
- 0.5 % of the contract price Stamp duty (when signing the contract)
The stamp duty must be paid to the tax office within 21 days from the date of purchase. In case the 21 days are exceeded, the fee doubles every month.
- approx. £1,500 consulting fees of a lawyer (before signing the contract) (optional)
depending on the agreed services, processing of your real estate purchase (including preparation of wills).
- Bank transfer fees (according to your bank)
- 5% of the contract price VAT (at the time of taking over the property)
The value added tax is to be paid to the tax office before taking over the real estate.
- 12% (since 10/02/2023) of the contract price Land Transfer Tax 6% Land Registry Transfer Fee, 6% Title Deed Transfer (if the title deed is transferred into your name).
Payable to the Land Registry in Northern Cyprus. This process can take between 8 – 12 months.
- approx. £1,200-1,500 connection fees of water and electricity etc. (at move-in)
These are costs for electricity, water, telephone and internet for a new property, which are to be paid directly to the construction company.
- approx. £0.13 per 1 m2 annual real estate tax
In order to buy a property, all foreign citizens must apply for a purchase permit (konut alım). To apply for this, we need a certificate of good conduct translated into Turkish with apostille certified. We provide our clients with all kinds of support including legal assistance and litigation acceleration.
The best way to buy real estate is off plan, that is, before it has been built and completed. At the beginning of the construction phase, prices are 30-50% cheaper than after the completion of the project. An off-plan purchase is particularly worthwhile for investors.
An early purchase is worthwhile because before the beginning the selection is the largest and thus also the object selection within the project. Due to the high demand it is, properties that are already ready for occupancy are a rarity.
If a project is in the off-plan phase, the region and property are visited and plans and animations of the developer are viewed. In most cases, it is not the first project of a developer, so that already completed properties can be visited to convince themselves of the quality and construction method.
North Cyprus Homes focuses exclusively on new construction projects in the best locations in North Cyprus. Therefore, for a real estate purchase you should have at least a budget of 80.000-100.000€. Studios are available from as little as £65,000. Not to forget that ancillary purchase costs and furniture & equipment are added.
On request, we can also help you find a suitable resales object, these are sometimes cheaper. However, it is important to keep an eye out for resales in order to avoid high follow-up costs.
Our experienced staff is available to answer any questions you may have about choosing a property location as well as the property itself. We accompany you on visits and leave no question unanswered.
During your visit we will provide airport transfer and accommodation for three nights.
When Cypriots migrated from the north to the south in 1974, many plots and properties were left behind. Land of the Turkish Republic of Northern Cyprus is secured by the government and the Basic Law.
In 2005, the Immovable Property Commission was established jointly with the European Court of Justice.
If a Southern Cypriot claims a property or land, a compensation payment is made by the Immovable Property Commission.
It is possible to secure your dream property at a fixed purchase price. Here it is common that a deposit of 2,000 and 5,000 GBP is paid. This takes the property off the market for 2-4 weeks and reserves it for you at a fixed price (even if the price goes up in the coming weeks). This sum will be offset against the purchase price and is non-refundable. By arrangement, many developers allow this down payment to be optionally transferred to another property owned by the developer.
The official currency in Northern Cyprus is the Turkish lira, which is used to purchase everyday goods and services. The euro is also accepted as a means of payment almost everywhere, whether in restaurants, cafés, shopping stores, etc. The euro is a recognized currency.
Real estate (hard assets) in northern Cyprus is traded in British pounds. The following currencies are accepted: Euro, USD, GBP and Bitcoin.
No, you do not have to be registered or have a residence permit to purchase a property in North Cyprus. The purchase of real estate in North Cyprus is independent of the residence of the interested party.
Only a passport is required to purchase a property in North Cyprus. In the second step, when the purchase permit is applied for you need a current certificate of good conduct, which must be translated into Turkish and certified with an apostille.
This depends on the location and equipment and starts on average at 1,500€ per m2. Properties are delivered ready for occupancy, bathrooms are equipped and rooms are equipped with built-in wardrobes. The kitchen furniture is also included in the price. Depending on the project, the use of communal pool facilities and green areas and recreational facilities is included in the price.
The return depends on the duration of the lease and is, for example. at an average utilization of 200 days/year 10 to 12%.
Yes, different payment and financing plans are offered depending on the developer. For example, you can make a 30% down payment on your dream property and conveniently pay off the rest in interest-free monthly installments. Since this depends very much on the individual developer, we will discuss specifics about each project when you are on site.
Alternatively, there is the possibility of financing, e.g. by mortgaging your existing property in Germany at a favorable interest rate. We recommend that you schedule a consultation with your financial advisor in advance.
The majority of residential complexes offer the possibility of a rental service. Depending on the company, this service includes marketing, cleaning, maintenance, key delivery, airport transfer, car rental and much more. If this service is used, the companies charge proportionally between 30-50% from the rental income.
This depends on the object and the location of the property. From experience, the increase in value within a year is 30-80%. We can advise you on this in more detail on site.
You can decide how involved you want to be in the purchase process. Either you are on site and take care of the purchase process independently with us at your side or you have the purchase handled by a lawyer.
In the second case, you will receive comprehensive legal advice in advance and subsequently grant the lawyer a power of attorney so that he can handle the purchase on your behalf. In this case, the lawyer takes over all the tasks such as, among others: Drafting and monitoring the purchase agreement, legal review of the property, registration of the property and much more.
All you need is a passport.
It is also possible to issue a power of attorney from Germany for a lawyer working in Northern Cyprus.
This varies from person to person. Some come with have already made a specific choice in advance, so they only need to hire a lawyer with a power of attorney. In that case, within one to two days maximum, the real estate purchase is done.
Still others want to view different objects first to make a comparison and then make a choice.
However, we also have clients who buy property from a distance without having visited North Cyprus.
Since the entire process is very individual, we advise you to look for a reliable and experienced local partner to get extensive advice.
There is a tax on rental income in the amount of 10% of income.
Life in North Cyprus
The official currency in Northern Cyprus is the Turkish lira, which is used to purchase everyday goods and services. The Euro is also accepted as a means of payment almost everywhere, whether in restaurants, cafés, shopping stores, etc. The euro is a recognized currency.
Real estate (hard assets) is traded in British pounds in the north of Cyprus. The following currencies are accepted: Euro, USD, GBP, and Bitcoin.
Yes, it is even relatively easy to open a Northern Cyprus current account (in EUR, USD, GBP, TLR).
To open an account at a bank in Northern Cyprus, you will need the following documents:
- A copy of the contract of sale of your property.
- A valid passport.
You can use this account, for example, to purchase a property or for future rental income.
In case you are an EU citizen, you will automatically receive a 30-day visa upon entry. For EU citizens, there is an additional option before the 30th day of stay to cross the border into the Republic of Cyprus for one hour in order to obtain another 30-day visa upon re-entry. However, the residence limit of 90 days within a 180-day period may not be exceeded. For further questions regarding entry requirements and entry possibilities for non-EU citizens, please feel free to contact us at any time.
Yes, this is possible. An attorney handles these concerns. We would be happy to introduce you to a professional legal advisor:in.
Cyprus has over 300 days of sunshine a year and a very pleasant Mediterranean climate. In high summer (July/August) it can get up to 40 degrees and in winter about 15 degrees. Frost and snow do not usually exist in Cyprus, only in the Troodos Mountains (1952m high) you can even ski in winter.
Yes, children’s playgrounds and water parks are given everywhere. Cypriots are traditionally very family-oriented and love children.
There are two ways to get to North Cyprus: A direct flight to Northern Cyprus with a stop in Turkey or via Southern Cyprus. Those flying over southern Cyprus can then travel back and forth across the island-wide checkpoints as often as they like. As an EU citizen you do not need a visa to enter South Cyprus.
If you fly directly to North Cyprus, you also do not need a visa, the entry stamp is issued on an arrival sheet. You can also travel over to the south as an EU citizen.
The following documents (for the last 5 years) should be submitted with your application:
⦁ Police clearance certificate from the Turkish embassy or from the country of the foreign national
⦁ Medical report blood tests and tuberculosis examination from the state hospital.
⦁ Police entry and exit report
⦁ Residence form from resident muktar
⦁ Passport – original and copy
⦁ Police entry and exit report
⦁ Title deed (Kocan) or lease agreement
⦁ Income information (Maaş Bordrosu) and/or bank statements
⦁ Birth certificate – original & copy (in Turkish or English)
⦁ If married – marriage certificate – original and copy (in Turkish or English)
⦁ Student certificate, if the applicant is a student.
As a rule, each month the property owner pays the cost of water and electricity on the meter. In the winter months, the cost of electricity is spent more, in the summer – for water. Property tax is paid once a year – it is small and amounts to 1 TL (Turkish Lira) per 1 m2.
If the air conditioners are new and have an inverter, they can be used for heating and cooling. The monthly electricity bill for a family of 3 is usually 200 – 400 TL. water – 50 – 100 tsp.
As a rule, a small monthly fee is paid for garbage collection and cleaning of the territory. If it is a complex, especially with a swimming pool, there is an additional fee for pool maintenance and gardening on site. It can cost from 20 to 50 pounds (the more expensive and prestigious the place, the higher the price of the service).
If it is a private house or villa, the owner makes the decision whether to hire workers or a cleaning company or do everything himself.
Villas and apartment complexes always have their own septic tanks (in individual cases one large septic tank per village, e.g. for 20 villas). The city has a centralized sewage and wastewater treatment system.
The average temperature in northern Cyprus in winter is +15 degrees, so that, for example, apartments with good insulation can hardly be heated. As a rule, one air conditioner is enough to heat a property. Other options for heating in a property are autonomous heating systems (diesel or gas) and radiators that can be installed in the house/apartment. You can also install floor heating (water or electric). This is not very common, but in Northern Cyprus there are specialists in their installation.